Question 1

Under variable costing, the unit product cost would be:

Accepted Answer

A) $38 per unit 
B) $52 per unit 
C) $58 per unit 
D) $70 per unit 
A) $38 per unit 
B) $52 per unit 
C) $58 per unit 
D) $70 per unit

Question 2

The total gross margin for the month under the absorption costing approach is:

Accepted Answer

A) $12,000 
B) $59,400 
C) $63,000 
D) $27,000 
A) $12,000 
B) $59,400 
C) $63,000 
D) $27,000

Question 3

Moises Corporation manufactures a single product.Last year, the company's variable costing net operating income was $68,000 and ending inventory decreased by 900 units.Fixed manufacturing overhead cost per unit was $6 in both beginning and ending inventory.

Required:
Determine the absorption costing net operating income for last year.Show your work!

Accepted Answer

Manufacturing overhead deferred in (rele

Question 4

The company's overall break-even sales is closest to:

Accepted Answer

A) $272,067 
B) $328,299 
C) $114,341 
D) $386,408 
A) $272,067 
B) $328,299 
C) $114,341 
D) $386,408

Question 5

When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be:

Accepted Answer

A) less than net operating income reported under absorption costing. 
B) greater than net operating income reported under absorption costing. 
C) equal to net operating income reported under absorption costing. 
D) higher or lower because no generalization can be made. 
A) less than net operating income reported under absorption costing. 
B) greater than net operating income reported under absorption costing. 
C) equal to net operating income reported under absorption costing. 
D) higher or lower because no generalization can be made.

Question 6

Under the LIFO inventory flow assumption, if the number of units in inventories increase between the beginning and end of the period, absorption costing net operating income will generally be greater than variable costing net operating income.

Accepted Answer

A) True 
 B)False

Question 7

What is the unit product cost for the month under variable costing?

Accepted Answer

A) $99 per unit 
B) $138 per unit 
C) $108 per unit 
D) $147 per unit 
A) $99 per unit 
B) $138 per unit 
C) $108 per unit 
D) $147 per unit

Question 8

Which of the following statements is true for Year 2?

Accepted Answer

A) The amount of fixed manufacturing overhead released from inventories is $12,000 
B) The amount of fixed manufacturing overhead released from inventories is $654,000 
C) The amount of fixed manufacturing overhead deferred in inventories is $12,000 
D) The amount of fixed manufacturing overhead deferred in inventories is $654,000 
A) The amount of fixed manufacturing overhead released from inventories is $12,000 
B) The amount of fixed manufacturing overhead released from inventories is $654,000 
C) The amount of fixed manufacturing overhead deferred in inventories is $12,000 
D) The amount of fixed manufacturing overhead deferred in inventories is $654,000

Question 9

The net operating income (loss)under variable costing in Year 2 is closest to:

Accepted Answer

A) $31,000 
B) $160,000 
C) $200,000 
D) $26,000 
A) $31,000 
B) $160,000 
C) $200,000 
D) $26,000

Question 10

The unit product cost under variable costing in Year 2 is closest to:

Accepted Answer

A) $23.00 
B) $38.00 
C) $32.00 
D) $29.00 
A) $23.00 
B) $38.00 
C) $32.00 
D) $29.00

Question 11

Under variable costing, fixed manufacturing overhead is treated as a product cost.

Accepted Answer

A) True 
 B)False

Question 12

Fernstrom Corporation has two divisions: East and West.Data from the most recent month appear below:   The company's common fixed expenses total $52,140.If the company operates at exactly the break-even sales of the East Division and West Division, what would be the company's overall net operating income?

Accepted Answer

A) $0 
B) ($235,140) 
C) ($52,140) 
D) $30,540 
A) $0 
B) ($235,140) 
C) ($52,140) 
D) $30,540

Question 13

The Foreign Division's break-even sales is closest to:

Accepted Answer

A) $305,000 
B) $249,412 
C) $470,663 
D) $177,941 
A) $305,000 
B) $249,412 
C) $470,663 
D) $177,941

Question 14

The impact on net operating income of a small change in sales for a segment is best predicted by using:

Accepted Answer

A) the contribution margin ratio. 
B) the segment margin. 
C) the ratio of the segment margin to sales. 
D) net sales less segment fixed costs. 
A) the contribution margin ratio. 
B) the segment margin. 
C) the ratio of the segment margin to sales. 
D) net sales less segment fixed costs.

Question 15

What is the net operating income for the month under absorption costing?

Accepted Answer

A) $2,900 
B) $11,300 
C) $17,400 
D) $14,500 
A) $2,900 
B) $11,300 
C) $17,400 
D) $14,500

Question 16

Under variable costing, an increase in fixed manufacturing overhead will affect the unit product cost.

Accepted Answer

A) True 
 B)False

Question 17

Vancott Inc., which produces a single product, has provided the following data for its most recent month of operation:   The company had no beginning or ending inventories.
Required:
Compute the unit product cost under absorption costing.Show your work!

Accepted Answer

The answer of Vancott Inc., which produces a single product,...

Question 18

Under the absorption costing method, a company can increase profits simply by increasing the number of units produced.

Accepted Answer

A) True 
 B)False

Question 19

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

Accepted Answer

A) ($7,000) 
B) $172,000 
C) $351,000 
D) $496,000 
A) ($7,000) 
B) $172,000 
C) $351,000 
D) $496,000

Question 20

The Blue Division's break-even sales is closest to:

Accepted Answer

A) $518,750 
B) $405,299 
C) $381,481 
D) $310,390 
A) $518,750 
B) $405,299 
C) $381,481 
D) $310,390

Under variable costing, the unit product cost would be:

The total gross margin for the month under the absorption costing approach is:

The company's overall break-even sales is closest to:

When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be:

Under the LIFO inventory flow assumption, if the number of units in inventories increase between the beginning and end of the period, absorption costing net operating income will generally be greater than variable costing net operating income.

What is the unit product cost for the month under variable costing?

Which of the following statements is true for Year 2?

The net operating income (loss)under variable costing in Year 2 is closest to:

The unit product cost under variable costing in Year 2 is closest to:

Under variable costing, fixed manufacturing overhead is treated as a product cost.

The Foreign Division's break-even sales is closest to:

The impact on net operating income of a small change in sales for a segment is best predicted by using:

What is the net operating income for the month under absorption costing?

Under variable costing, an increase in fixed manufacturing overhead will affect the unit product cost.

Vancott Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under absorption costing.Show your work!

Under the absorption costing method, a company can increase profits simply by increasing the number of units produced.

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

The Blue Division's break-even sales is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters

Exam 7: Variable Costing and Segment Reporting: Tools for Management

Under variable costing, the unit product cost would be:

The total gross margin for the month under the absorption costing approach is:

The company's overall break-even sales is closest to:

When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be:

Under the LIFO inventory flow assumption, if the number of units in inventories increase between the beginning and end of the period, absorption costing net operating income will generally be greater than variable costing net operating income.

What is the unit product cost for the month under variable costing?

Which of the following statements is true for Year 2?

The net operating income (loss)under variable costing in Year 2 is closest to:

The unit product cost under variable costing in Year 2 is closest to:

Under variable costing, fixed manufacturing overhead is treated as a product cost.

The Foreign Division's break-even sales is closest to:

The impact on net operating income of a small change in sales for a segment is best predicted by using:

What is the net operating income for the month under absorption costing?

Under variable costing, an increase in fixed manufacturing overhead will affect the unit product cost.

Vancott Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under absorption costing.Show your work!

Under the absorption costing method, a company can increase profits simply by increasing the number of units produced.

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

The Blue Division's break-even sales is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters